Qualifying whatever and HoH


D

Dick Adams

My CPA calls me when he has a question in the quirk in tax
code changes. This is because he is internet challenged and
still has yet to figure out how to use this newsroups. But
his knowledge of taxation is second to Ed Zollars.

His question is what happens to Uncle Phil? A single
taxpayer with no other dependents takes beloved, retired,
disabled Uncle Phil into her/his home. Phil lives there
the entire tax year and his only income is from Social
Security and his Roth IRA - let's say SS = $19K and Roth IRA
= $12K.

1. Is Phil a dependent for tax purposes?
(With that level of income (taxable or not), I said NO.)

2. Is taxpayer an HoH?
(I said "Wait to see what Johnny and the Supremes have to
say.")

Opinions?
 
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B

Brew1

Does Phil provide more than half of his own support? If
Phil socks away his money and doesn't spend it on himself,
he might qualify as a dependent.
 
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A

A.G. Kalman

Dick said:
My CPA calls me when he has a question in the quirk in tax
code changes. This is because he is internet challenged and
still has yet to figure out how to use this newsroups. But
his knowledge of taxation is second to Ed Zollars.

His question is what happens to Uncle Phil? A single
taxpayer with no other dependents takes beloved, retired,
disabled Uncle Phil into her/his home. Phil lives there
the entire tax year and his only income is from Social
Security and his Roth IRA - let's say SS = $19K and Roth IRA
= $12K.

1. Is Phil a dependent for tax purposes?
(With that level of income (taxable or not), I said NO.)

2. Is taxpayer an HoH?
(I said "Wait to see what Johnny and the Supremes have to
say.")

Opinions?
If taxpayer is providing more than half of Uncle Phil's
total support, then Phil is a dependent. Phil fails the
qualifying relative test for filing as HOH. A QR who is
your QR for dependency exemption only because they reside
with you for the whole year is not a QR for HOH. Now if
Phil was the taxpayer's brother.... that's another story.
 
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D

Drew Edmundson

Dick Adams said:
My CPA calls me when he has a question in the quirk in tax
code changes. This is because he is internet challenged and
still has yet to figure out how to use this newsroups. But
his knowledge of taxation is second to Ed Zollars.

His question is what happens to Uncle Phil? A single
taxpayer with no other dependents takes beloved, retired,
disabled Uncle Phil into her/his home. Phil lives there
the entire tax year and his only income is from Social
Security and his Roth IRA - let's say SS = $19K and Roth IRA
= $12K.

1. Is Phil a dependent for tax purposes?
(With that level of income (taxable or not), I said NO.)
The first test to pass is Uncle Phil a qualifying child or
qualifying relative (see 152(a))?

152(c), in part, defines a qualifying child as a person who
is the "child of the taxpayer or decedent of such child or a
brother, sister, stepbrother, or stepsister of the taxpayer
or a descendant of any such relative. So Uncle Phil is not
a qualifying child. (I am ignoring the possibility of some
family circumstance that would make him both an Uncle and a
brother, for example.)

Uncle Phil fits the relationship requirements of
152(d)(1)(A) as a qualifying relative as he is "a brother or
sister of the father or mother of the taxpayer"
152(d)(2)(F).

The next qualifying relative test is the gross income test
of 152(d)(1)(B). Uncle Phil's gross income cannot exceed
the exemption amount as defined in 151(d). Using the
example Uncle Phil's gross income is zero so this test is
met as zero does not exceed the exemption amount.

The next qualifying relative test is the support test of
152(d)(1)(C). Does the taxpayer provide more than half of
Uncle Phil's support? We don't know as the example doesn't
tell us. Brew1 addressed this issue.

The last qualifying relative test is from 151(d)(1)(D). Is
Uncle Phil not a qualifying child of another taxpayer or of
the taxpayer? Uncle Phil isn't the qualifying child of the
taxpayer, we have already dealt with that. As Uncle Phil
lives the entire year with the taxpayer then he probably
isn't the qualifying child of another. Although he could be
if he is disabled or a student who is not age 24 and some
other relative (e.g. Uncle Phil's sister and taxpayer's
mother) live with them. So does anyone else live with
taxpayer and Uncle Phil?
2. Is taxpayer an HoH?
(I said "Wait to see what Johnny and the Supremes have to
say.")
I will wait on this until we get the first one worked out.
 
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P

Phil Marti

As has been mentioned by several people, his income is not
an issue. How he spent it, a/k/a the support test, is.
If taxpayer is providing more than half of Uncle Phil's
total support, then Phil is a dependent. Phil fails the
qualifying relative test for filing as HOH. A QR who is
your QR for dependency exemption only because they reside
with you for the whole year is not a QR for HOH.
While your second statement is true, Uncle Phil doesn't meet
that description. He's a relative as we always thought of
them, thus he can be a qualifying relative for HofH.
 
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A

A.G. Kalman

As has been mentioned by several people, his income is not
an issue. How he spent it, a/k/a the support test, is.
While your second statement is true, Uncle Phil doesn't meet
that description. He's a relative as we always thought of
them, thus he can be a qualifying relative for HofH.
A brother or sister of a parent.......... I'm getting tired
.... you're right.
 
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bono9763

If taxpayer is providing more than half of Uncle Phil's
While your second statement is true, Uncle Phil doesn't meet
that description. He's a relative as we always thought of
them, thus he can be a qualifying relative for HofH.
But Uncle Phil has to be a blood relative (brother of your
mother or sister) in order to qualify you for HOH. He can't
be married to your mother's or father's sister.

Dennis
 
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